WTI, Brent Climb Over 1% as Geopolitical Tensions, Inventory Draw Support Prices

Oil prices rose more than one percent on Friday, with Brent crude closing out its strongest monthly gain since March, according to live price data. The gains come as the market assesses geopolitical risks following an attack on a major Saudi Arabian oil facility and digests a significant weekly draw in U.S. crude inventories.

West Texas Intermediate (WTI) crude settled at $84.67 per barrel, up $1.08 or 1.29%. The international benchmark Brent crude rose $1.09 to $90.12 per barrel, a 1.22% gain. Natural gas was relatively flat, slipping one cent to $2.75 per MMBtu. The price for Bakken crude at the wellhead, reflected by its differential to WTI, was -$3.42.

The price strength caps a strong month driven by supply concerns. According to Rigzone, July marked Brent's strongest monthly gain since March as geopolitical conflicts raised concerns about global crude supplies.

A key focus for traders is the aftermath of an attack earlier this week on Saudi Aramco's Abqaiq oil-processing complex. A report from OilPrice.com describes the facility as the "single most strategically important piece of energy infrastructure anywhere in the world," with a daily processing capacity of more than seven million barrels. While Saudi Arabia has not reported a major export disruption, satellite imagery suggests the attack reached areas associated with crude processing itself, fueling concerns about the facility's operational status.

"The real significance of the attack lies elsewhere," the OilPrice.com report stated. "It exposes a vulnerability that traders, governments, and investors have largely assumed no longer existed" in Saudi Arabia's export architecture.

Adding fundamental support to prices, U.S. crude inventories fell sharply last week. Data from the Energy Information Administration showed crude stocks, excluding the Strategic Petroleum Reserve, dropped by more than seven million barrels to 404.5 million barrels for the week ending July 24, according to Rigzone.

For Bakken operators, the rising global benchmark prices are a positive signal, though the local differential indicates Bakken crude is still trading at a discount to the U.S. benchmark. The current price environment, supported by tightening global physical supplies and geopolitical risk premiums, provides stronger cash flow for producers in the Williston Basin. However, the market's cautious reaction to the Abqaiq event—with prices rising but not spiking—suggests traders are awaiting confirmation on any actual supply loss. Sustained prices above $80 per barrel for WTI continue to support economic drilling and completion activity in North Dakota's primary oil-producing region.